Strategic Leadership
Exam Answer Key
Course Introduction
Strategic Leadership focuses on equipping students with the knowledge and skills necessary to guide organizations towards long-term success in complex and dynamic environments. The course examines the theories, processes, and practices of leadership at the strategic level, emphasizing vision development, change management, ethical decision-making, and innovation. Through case studies, group projects, and self-assessment activities, students learn how leaders shape organizational culture, align stakeholders, anticipate challenges, and drive sustainable competitive advantage.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 10th Edition by Michael A. Hitt
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13 Chapters
2022 Verified Questions
2022 Flashcards
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Chapter 1: Strategic Management and Strategic Competitiveness
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) The steps for identifying the profit pools in an industry include of all of the following except:
A) Defining the boundaries of the pool.
B) Estimating the overall size of the pool.
C) Defining the competitors in the pool.
D) Estimating the size of the value-chain activity in the pool.
Answer: C
Q2) The ability to effectively and efficiently access and use information is
A) vitally important at the point where a domestic firm enters the global market.
B) an important source of competitive advantage in virtually all industries.
C) the minimum required for survival in virtually any industry.
D) critically important mainly in high technology industries.
Answer: B
Q3) The goal of strategic management is to develop a competitive advantage that is permanent.
A)True
B)False
Answer: False
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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164 Flashcards
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Sample Questions
Q1) The environmental segments that comprise the general environment typically will NOT include
A) demographic factors.
B) sociocultural factors.
C) substitute products or services.
D) technological factors.
Answer: C
Q2) Environmental scanning would be most important for which of the following organizations?
A) a provider of hospice services for the terminally ill
B) a web design company catering to small businesses
C) a neighborhood sewer and water utility
D) a manufacturer of household linens
Answer: B
Q3) (Refer to Case Scenario 2) The use of the Internet by Mangler would enhance its low cost strategy and reduce the barriers of entry to markets in Europe, Asia, and Latin America
A)True
B)False
Answer: True
Page 4
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) Because the firm combines tangible and intangible resources to create capabilities, A) these capabilities are fragile and subject to sudden loss of value. B) they are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital.
C) they are easily transferred from one firm to another as employees change jobs. D) these types of capabilities are considered primary activities in the value chain.
Answer: B
Q2) The foundation of many capabilities lies in the unique skills and knowledge of a firm's employees.
A)True
B)False
Answer: True
Q3) Given enough time, any firm's competitive advantage can be imitated by its competitors.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Business-Level Strategy
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Sample Questions
Q1) The term "stuck in the middle"
A) means adhering to a middle of the road strategy in the face of negative outcomes.
B) indicates that the customers of the firm are willing to pay only a mid-range price for the product.
C) reflects the fact that the customers of the firm have only moderate expectations regarding product quality.
D) means that the firm's cost structure is not low enough to allow it to attractively price its products and that its products are not sufficiently differentiated to create value for its target customer.
Q2) Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low prices. Ikea is using which business level strategy?
A) Cost leadership
B) Focused cost leadership
C) Differentiation
D) Focused differentiation
Q3) (Refer to the above Case Scenario) What generic business strategy best describes Abrahamson's? Why?
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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Sample Questions
Q1) Fast-cycle markets are characterized by "generational products" which start out with a substantial technological advance in the performance of a product category followed by incremental technological advances as new generations of products are introduced. A)True
B)False
Q2) Define competitive actions and responses and explain the two types of competitive actions and responses.
Q3) Wal-Mart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage. The response of local competitors was _______ because they __________.
A) rapid; were nimble and flexible
B) slow; lacked the ability to marshal resources
C) rapid; perceived gains from responding to Wal- Mart's attack
D) rapid; had the resources and flexibility compete against Wal-Mart
Q4) (Refer to the above Case Scenario) Is Wal-Mart a competitor or a customer of Plasco?
Q5) Define slow-cycle, fast-cycle and standard cycle markets.
Q6) Define awareness, motivation and ability in reference to competitive behavior.
Page 7
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Chapter 6: Corporate-Level Strategy
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Sample Questions
Q1) Corporate-level strategies are strategies a firm uses to diversify its operations from a single business competing in a single market into several product markets and, most commonly, into several businesses.
A)True
B)False
Q2) Specialty Steel, Inc., needs a particular type of brick to line its kilns in order to safely achieve the high temperatures needed for the unusually strong steel it produces. The clay to make this brick is very rare and only two brick plants in the U.S. make this type of brick. Specialty Steel has decided to buy one of these brick plants. This is an example of
A) backward integration.
B) forward integration.
C) horizontal integration.
D) virtual integration.
Q3) The lowest level of diversification is the ____ level.
A) single business
B) dominant business
C) related constrained
D) unrelated
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8
Chapter 7: Merger and Acquisition Strategies
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because
A) of barriers to entry in many industries.
B) it is difficult and time intensive for companies to develop products that differ from their current product line.
C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition.
D) unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before acquisition.
Q2) Downscoping represents a reduction in the number of a firm's employees and sometimes in the number of its operating units, but it may or may not represent a change in the composition of businesses in the corporation's portfolio.
A)True
B)False
Q3) (Refer to the above Case Scenario) Why would Barracuda consider acquisition as its preferred mode of entry into furniture?
Q4) What is restructuring and what are its common forms?
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Chapter 8: International Strategy
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Sample Questions
Q1) Effectively implementing the ________ international corporate-level strategy often produces higher performance than does implementing either the _______ or _________ strategies.
A) multidomestic; global; transnational
B) global; multidomestic; transnational
C) cost leadership; differentation; focus
D) transnational; multidomestic; global
Q2) Which of the following is NOT a typical disadvantage of licensing?
A) little control over the marketing of the products
B) licensees may develop a competitive product after the license expires
C) lower potential returns than the use of exporting or strategic alliances
D) incompatibility of the licensing partners
Q3) After a firm decides to compete internationally, it must select its strategy and choose a mode of entry into international markets.
A)True
B)False
Q4) Discuss the three international corporate-level strategies. On what factors are these strategies based?
Q5) Discuss the effect of international diversification on a firm's returns.
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Chapter 9: Cooperative Strategy
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Sample Questions
Q1) Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50%. (Chapter 9 Strategic Focus). This collaboration is an example of a ________ which is effective at transferring ___________.
A) nonequity strategic alliance; explicit knowledge
B) joint venture; tacit knowledge
C) joint venture; explicit knowledge
D) equity strategic alliance; tacit knowledge
Q2) Using business-level strategic alliances to hedge against risk and uncertainty is most common in the slow-cycle markets.
A)True
B)False
Q3) The Renault Nissan alliance discussed in the Opening Case is an example of a ________ in that the firms seek to create economies of scope by sharing their resources and capabilities to develop manufacturing platforms that can be used to produce cars that will be either a Renault or a Nissan.
A) joint venture.
B) synergistic alliance.
C) horizontal complementary alliance.
D) dynamic alliance network.
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Chapter 10: Corporate Governance
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Sample Questions
Q1) The longer the focus of managerial incentive compensation, the greater the ____ top-level managers.
A) earnings potential for B) risks borne by C) incentives for D) potential tax burden for
Q2) Monitoring by shareholders is usually accomplished through A) management consultants. B) government auditors.
C) the firm's top managers.
D) the board of directors.
Q3) China YTC International has established an audit committee within its board of directors, appointed three new independent directors, and more openly speaks of serving investor's needs. This example illustrates that corporate governance in China may be tilting towards the Western model.
A)True
B)False
Q4) (Refer to the above Case Scenario) What characteristics will you look for in appointing new board members?
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Chapter 11: Organizational Structure and Controls
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Sample Questions
Q1) Research has consistently shown that there is one best way to structure all organizations, regardless of competitive strategy.
A)True
B)False
Q2) To successfully implement a cost leadership strategy, there is a need for A) freedom from constraining rules.
B) centralization of authority.
C) communication between functional silos.
D) sharing of competencies among divisions.
Q3) The BEST multidivisional structure to use
A) is the competitive form.
B) is the SBU form.
C) is the cooperative form.
D) depends on the degree of diversification.
Q4) In most cases, the focus strategy is best managed using a ____ structure.
A) simple
B) functional
C) multidivisional
D) vertical
Q5) Discuss the difference between strategic and financial controls.
Page 13
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Chapter 12: Strategic Leadership
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148 Verified Questions
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Sample Questions
Q1) CEO duality refers to
A) firms where there is both a president and a CEO.
B) CEOs who sit on the board of directors of other firms.
C) CEOs who hold office in more than one company.
D) the situation where the CEO is also chairperson of the board of directors.
Q2) A characteristic of the manager that may affect managerial discretion is his/her A) amount of industry experience.
B) level of education.
C) tolerance for ambiguity.
D) length of tenure.
Q3) Including talent from both the internal and external labor markets increases the likelihood that the firm will be able to form an effective top management team.
A)True
B)False
Q4) The balanced scorecard's perspective on learning and growth is intended to improve the firm's ability to innovate.
A)True
B)False
Q5) Define human capital and its importance to the firm's success.
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Chapter 13: Strategic Entrepreneurship
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Sample Questions
Q1) To be successful, an autonomous process for developing new products relies on
A) the diffusion of tacit knowledge.
B) the acquisition of innovative firms.
C) strategic alliances with other firms.
D) internal corporate venturing.
Q2) WayWard Products has a deliberate strategy to encourage internal innovations. It has established processes to support autonomous strategic behavior as well as induced strategic behavior. WayWard Products is involved in
A) entrepreneurial incubation.
B) creative destruction.
C) internal corporate venturing.
D) cooperative innovation strategies.
Q3) Acquisitions are a means of extending the company's product line and increasing revenues. The capital market values growth. Therefore, some firms make acquisitions to improve their standing in the capital markets.
A)True
B)False
Q4) What is the importance of international entrepreneurship?
Q5) (Refer to the above Case Scenario) What resources appear to be missing?
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